Hard Money Loans in Doylestown
Imagine you've come across this truly good deal for a fix and flip property located in a great location, and you happen to be either a seasoned real estate investor or a newbie who wants to try his hand at flipping. Many people know that knowledgeable professional flippers, such as Tarek and Christina El Moussa who star in HGTV's reality flipping program, Fix or Flop, can generate an average profit margin of $40,000 to $50,000 in their rehab business. No need to explain that their rehabbing experience, understanding of hard money loans, expertise in their market, and auction skills have played a significant part in their successes. That said, you've recently been developing your rehab and renovation knowledge, have got a contractor arranged and are certain that you will be able to do an impressive job for this property.
But where do you obtain the needed financing for flipping? A conventional lending institution, say for example a bank, takes at a minimum 1-2 months to approve the loan and deliver the capital. Because most home owners would prefer a fast closing, it may be best to begin looking for some other funding options.
What's more, for those who have a sub-optimal credit rating or don't receive a regular source of income, it can be more challenging for you to obtain bank financing, with the stricter loan criteria banks have put in place lately. So must you admit defeat and abandon your ambition to venture into fix and flips? By no means, particularly while Doylestown hard money loans will assist you to achieve great things in the real estate market.
A hard money home loan in Doylestown gives you what's possibly most desired by real estate investors — a fast closing in as few as a few weeks. In addition, the LTV value can range up to 70% of the property value, as determined by a credentialed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be more expensive than bank financing. But in reality, the rate of interest is not as pertinent for these loans, given that they will never be long-term financing. When it comes to short-term loans of several years or even less, you should think of them much like you would other expenditures for your project. After you remodel and sell the property, recuperating this expense is just like recovering the money you spent for new kitchen appliances you placed into the property.
Apart from this, hard money mortgages are not difficult to qualify for, even when you posses a bad credit score. Rather than focusing primarily on the applicant's credit score or source of income, Doylestown hard money lenders, who may be a private company or an individual, say yes to a loan after assessing the home value, how easy it will be to market, where it is located, and the probability of recovering their capital in the event of foreclosure. Adding to that, if the borrower can demonstrate prior experience in similar real estate endeavors, can put down cash towards the down payment, and the value of equivalent homes in the neighborhood works to his benefit, he has got an excellent shot of being eligible to obtain a hard money real estate loan.
So should you run into a very good and profitable flipping opportunity, rest assured you'll have a hard money lender in Doylestown, ready to loan you the cash you need. Submit the form or give us a call to talk about your project.
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